An upward-sloping individual labour supply curve is indicative of:
A)dominant substitution effects
B)dominant income effects
C)individuals that reduce work effort (hours) as income rises
D)an upward-sloping demand for leisure

Question

Quizplus · Accepted Answer

An upward-sloping individual labour supply curve is indicative of dominant substitution effects, meaning that as wages increase, individuals are more willing to substitute leisure time for work in order to earn more income.

An Upward-Sloping Individual Labour Supply Curve Is Indicative Of